I have two residental properties at the moment. One bought in 2003 the other bought this year. Capital appreciation on 2003 property and subsequent equity release purchased 2006 property. I purchased the 2006 property as a very short term investment based on projections of sustained growth for 2006 with possible slowdown in 2007. I felt i could turn a 20-25k net profit in under a year which definitely beats working for it. Already i have met this target.
Right now i feel it is time to sell just below top especially when i hear my friends talking about property in terms of you can't lose, it can only go up, i'm 20k richer than i was last week etc. (We are all middle twenties and grew up in an era where hand-me-downs werent even a consideration).
Now i want to sell at least one of the properties this year as i feel the era of surging prices is almost over with inflation and capital growth equalisation just around the corner.
If i sell 2003 property i know i wont pay CGT as it is my PPR. Do i pay any tax for the profit which will be made?
Does the 2006 property then become my PPR. If so can i sell that without paying CGT? Is there a time period associated with this?
Right now i feel it is time to sell just below top especially when i hear my friends talking about property in terms of you can't lose, it can only go up, i'm 20k richer than i was last week etc. (We are all middle twenties and grew up in an era where hand-me-downs werent even a consideration).
Now i want to sell at least one of the properties this year as i feel the era of surging prices is almost over with inflation and capital growth equalisation just around the corner.
If i sell 2003 property i know i wont pay CGT as it is my PPR. Do i pay any tax for the profit which will be made?
Does the 2006 property then become my PPR. If so can i sell that without paying CGT? Is there a time period associated with this?